Vehicle Representative Token for Secure Electronic Transactions
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Solution Overview
Problem
Current electronic transaction systems face security issues with intercepted payment credentials and high costs for merchants due to the need for apps, maintenance, and multi-handling of settlement funds, which delays access to funds for merchants.
Innovation Solution
A method utilizing a merchant aggregator platform hosted by a merchant acquirer to create a vehicle representative (VR) at the payment gateway, which acts as a proxy for payment vehicle credentials, allowing secure transactions without exposing actual credentials and reducing the number of entities handling settlement funds.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If payment vehicle credentials are transmitted through multiple entities (merchant, payment gateway, acquirer), then the transaction can be processed, but the security of payment credentials deteriorates due to potential interception
Solution Approach 1:
The patent introduces a token as an intermediary element that replaces sensitive payment credentials during transmission. The token acts as a mediator between the payment gateway and merchant, allowing transaction processing without exposing actual card details. This resolves the contradiction by enabling communication while eliminating the security vulnerability of credential interception.
Solution Approach 2:
The patent creates a token copy of the payment credentials that functions identically for transaction purposes but cannot be reverse-engineered to reveal the original card details. This copy enables the merchant to process payments without handling actual sensitive data, thus maintaining transaction capability while improving security.
2Ease of operation
If merchants use dedicated apps for transactions, then transaction capability is improved, but the cost and complexity for merchants deteriorates due to app development and maintenance
Solution Approach 1:
The patent enables merchants to use a single platform (web or mobile) that supports multiple transaction functions without requiring separate dedicated apps for each merchant. The tokenization system provides universal functionality across different merchant types and transaction scenarios, eliminating the need for individual app development and maintenance while maintaining full transaction capability.
3Reliability
If settlement funds are handled by multiple entities (acquirer, payment gateway, merchant), then the transaction settlement can be completed, but the time for fund access deteriorates due to multi-handling
Solution Approach 1:
The patent extracts the tokenization function from the traditional multi-entity settlement chain and consolidates it at the payment gateway level. This allows the merchant to receive funds directly from the acquirer without the funds needing to pass through additional processing layers, reducing the time for fund access while maintaining settlement reliability.
4Object-affected harmful factors
If payment credentials are protected through encryption and secure transmission, then security is improved, but the complexity of the transaction system deteriorates
Solution Approach 1:
The token serves as a simple intermediary that replaces complex encryption and secure transmission requirements with a straightforward substitution mechanism. The token can be transmitted in plain text without requiring additional security infrastructure, thereby improving security while reducing system complexity compared to traditional encrypted credential transmission.
Data Source
AI summary
A method of effecting an electronic transaction is described. The method includes receiving, through a merchant aggregator platform, a selection of one or more articles from a plurality of articles offered for purchase by a plurality of merchants on the merchant aggregator platform, wherein the platform is hosted by a merchant acquirer. Payment vehicle credentials of a payment vehicle are then passed to a payment gateway, and a vehicle representative (VR) is created at the payment gateway and associated with one or more credentials of the payment vehicle, the VR being usable by the merchant aggregator platform, in place of the one or more credentials, but from which the one or more credentials are indeterminable. The VR is then provided to the merchant aggregator platform through which a purchase request is received to confirm that the one or more articles have been purchased. Purchase details of the purchase request are then sent with the VR to the payment gateway at which the payment vehicle credentials are associated with the purchase details, based on the VR, and passed with the payment vehicle credentials to the merchant acquirer for on-going processing of the transaction.